Former Treasurer of the MI Democratic Party allegedly EMBEZZLED money from an 87-year-old brain damaged woman

Traci Kornak is a Michigan attorney and former treasurer for the Michigan Democratic Party who is currently under investigation for alleged financial exploitation and fraud. As of early 2026, her legal troubles center on her conduct as a court-appointed conservator for Rosealene Burd, a vulnerable senior citizen. Allegations include the embezzlement of more than $100,000, identity theft, and obtaining funds under false pretenses. In January 2026, Kornak was brought into probate court in Allegan County to address suspicions that she plundered Burd’s estate, specifically by making large withdrawals without providing required receipts to the court.

Beyond the embezzlement claims, Kornak faces accusations of insurance billing fraud originating from a 2022 whistleblower report. She is alleged to have used an assisted living facility’s tax identification number without permission to fraudulently bill an insurance company for nearly $50,000 for her client's care. While the Michigan Attorney General's office initially investigated and closed this case without charges in 2022, subsequent independent investigations by local law enforcement in Grand Rapids have continued to scrutinize her financial dealings.

Kornak’s legal situation has also triggered a significant political controversy involving Michigan Attorney General Dana Nessel, a personal friend and former associate. In December 2025, the Michigan House Oversight Committee held hearings following subpoenas for documents related to the state's handling of the Kornak investigation. Committee members allege that Nessel breached a required ethical "firewall" by requesting updates on the case and pressuring staff to close it quickly to facilitate a potential judicial appointment for Kornak in Kent County. Nessel’s office has denied any wrongdoing, maintaining that internal safeguards were upheld